Provisional guidelines on how green bonds will be listed on the floors of the Nigerian Stock Exchange (NSE) have been released by the NSE, with the bourse indicating its willingness to alienate defaulters of the guidelines when operational.
A green bond is one issued to finance or re-finance in part or in full new and existing eligible environmental or climate project through the bourse. Nigeria had after signing up to the Paris Climate Change protocols, indicated it would raise green bonds to finance some environmentally friendly projects in agriculture, transportation and renewable electricity sources.
However, in the draft guidelines the NSE recently released in Lagos, it stated that the issuers of green bond shall clearly state that the bond is a green bond. NSE equally noted that issuers shall comply with the rules, the Securities and Exchange Commission’s (SEC) regulations, and as well as the Exchange’s requirements for listing and issuance of bonds.